Duane Billington, a retired engineering technician and civic activist from Naples, “fought for 18 months against Jackson Laboratory's plan to expand in Florida,” according to a story in the Hartford Courant.”
Ultimately Mr. Billington was successful. Jackson Laboratory pulled up their negotiating stakes in Florida.
Governor Dannel Malloy’s chief of staff, Roy Occhiogrosso, read about the failed attempt to pitch the deal to Florida in a newspaper, evidentially shared the information with his boss, and a contingent from Connecticut was sent to Bar Harbor Maine to negotiate a deal with Jackson Laboratory administrators. The Courant story does not mention the names of members of the Connecticut contingent sent to negotiate with Jackson. The deal apparently was consummated and a letter of intent was signed between the parties.
When two members of the General Assembly, Senator Len Suzio and Senate Republican leader Leonard Fasano, asked to see the memorandum of understanding between the state and Jackson, they were sternly rebuffed. Malloy officials asserted the documents contained trade secrets that could not be disclosed to members of the General Assembly who would be asked to provide funding for the deal. The same claim was made in Florida, an overreach that some say soured the state on the deal.
Suzio has scoffed at the transparent dodge.
“I've got a business guy here who fell off his chair laughing,'' Suzio said of a colleague's reaction about trade secrets. “Why would there be any confidential information in a letter of intent? We're not asking for the disclosure of secret formulas. It's laughable.''
Many of Suzio’s questions were bridges too far; Mr. Malloy’s aggressive administration very early acquired the habit of pushing things through with minor participation on the part of the people’s representatives. Republicans in the General Assembly were simply pushed out of the way during budget negotiations.
It is becoming increasingly apparent that the Malloy administration has to some extent been trying to sell the Democratic dominated General Assembly a pig in a poke. The Malloy-Jackson deal, according to the Courant story, “is scheduled to come to a vote Wednesday in the House of Representatives and the Senate. Malloy is calling for the state to borrow $291 million to construct a new building on 17 acres of state-owned land at the University of Connecticut Health Center campus in Farmington and provide $99 million in research money for Jackson. The nonprofit institute is pledging to create 300 jobs within 10 years and 600 jobs within 20 years, making it slightly larger than the Florida plan in jobs and state subsidies.”
Mr. Billington certainly is not shy of reporters.
"They couldn't find a home here in Collier County or Sarasota because they don't have a product to deliver,'' Mr. Billington told a reporter. “Their business is to produce genetically altered mice for other scientists to study and use in experiments. This thing they're going into is a totally new deal for them. They have no expertise. It's an exercise in venture capitalism. It could work, and it might not.''
Jackson Laboratory has had success in genetically altering mice sold to prospective buyers in other research facilities. The Connecticut operation would break new and untested ground for Jackson, which now is seeking to move into an entirely different field, that of genomic medicine, the study of genes and genetic interactions that, according to a 26-page brochure that was distributed to Connecticut legislators, are "essential to creating new medicines and treatments for some of humankind's worst diseases and conditions.''
Mr. Billington told the Courant reporter, “We're glad to be rid of them. I feel bad for the state of Connecticut if you all have politicians who are swallowing the Jackson line hook, line and sinker.”
This is the second time the Malloy administration has asked the Democratic dominated General Assembly to swallow an unpalatable deal. Asked to vote on a budget the details of which had not been finalized in negotiations between Malloy administration officials and SEBAC, a union coalition authorized to negotiate contracts, Democratic leaders in the General Assembly persuaded their caucus to vote in favor of an unfinished budget. The leaders of the Democratic caucus, President of the Senate Don Williams and Speaker of the House Chris Donovan, apparently like the taste of hooks and lines and sinkers.
Mr. Donovan, SEBAC’s best friend in the legislature, is running for the U .S. Congress in Connecticut’s 5th District.
Since the Malloy administration enjoys an insuperable majority in the General Assembly, it does not need Republican votes to pass measures the details of which have not been adequately ventilated in public. Calls on the part of Republicans to put off the vote Wednesday until the pig in the poke – minus the trade secrets, which always may be redacted in publically disclosed documents – has been put on public view and debated fully by the General Assembly will no doubt be ignored by the Malloy administration. And the deal will go down on Wednesday, possibly with the concurrence of some Republicans in the General Assembly who have acquired a taste for hooks, lines and sinkers.
All the “buts” will not arrive until much later.
Mike Hyde, Jackson’s Vice President and fund raiser, no longer concerns himself with Mr. Billington's criticisms. "I'm delighted to be in Connecticut,” he has said. “It's a great state. I really don't have any hard feelings about what happened in Florida. This is here. This is now.”
Florida rejected Jackson’s best offer because the state is flat on its back and broke, unlike Connecticut. For now, at least, the state is flush in quickly disappearing funds owing mostly to the largest tax increase in its history imposed upon it by its “shared sacrifice” governor. This is here. This is now.
And the future? Let the future eat cake.
Showing posts with label Fasano. Show all posts
Showing posts with label Fasano. Show all posts
Wednesday, October 26, 2011
Sunday, October 23, 2011
Jackson Laboratory, The Done Deal
Jackson Laboratory has found some important friends in high places in Connecticut. Among them are Governor Dannel Malloy and, almost certainly, the Democratic caucus in the General Assembly, which has tended thus far to march to the music of Mr. Malloy’s drum on all issues of importance. Here and there, critics of the deal privately arranged between the governor and Jackson have surfaced.
“Republicans,” one commentator wrote, “are right to question the deal and get as much information as possible. But by the experts’ accounts, this is a good risk for Connecticut. And as in so many other ways, Connecticut should not be like Florida.”
Jackson was considering a move to Florida, but the deal in that state was never consummated. It has become part of the narrative of Connecticut Democrats supporting the deal that the governor of Florida failed to engage in the negotiations and so the state lost out on a promising deal that a wide awake Connecticut governor thereafter snatched from Florida’s jaws.
Connecticut 1, Florida 0.
Mr. Malloy, an activist governor, has vowed to remake Connecticut. Previous governors have been content in improving the general business climate in the state so that all businesses large and small, relying upon a set of governmental laws and regulations that did not favor one business over another, could plot their futures and compete together on what former Attorney General Richard Blumenthal use to call “a level playing field.” In bygone days of yore, if a regulation or a law did not apply equally to the local barber shop and a large employer such as Pratt & Whitney, that law or regulation would die in utero, because in the glory days of the republic laws and regulations were general and equitable. In the modern period, brimful with lobbyists and crony capitalists, governors see fit to determine the economic future of states by remaking business environments -- while in the process rewarding their friends and punishing their enemies.
Oh, happy day.
The “deal” to which the commentator above referred is, of course, the “private arrangement” worked out between Mr. Malloy and Jackson Laboratory to move the Jackson’s research operations to the UConn Health Center (UCHC) in Farmington.
Prior to the deal, Mr. Malloy had awarded the health center nearly a billion dollars, presumably to improve its failing operations. The installation of Jackson at the reconfigured UCHC will cost Connecticut taxpayers an additional $291 million -- initially. UCHC, a failing enterprise before Mr. Malloy and the Democratic dominated General Assembly decided to douse it with money, has been a tax sponge for decades. Jackson Laboratories is a successful non-profit business, which means that, unlike other overtaxed businesses in Connecticut, the research laboratory will not be returning tax dollars to the state. As a general rule, non-profits are tax revenue losing operations because, among other reasons, they do not produce a taxable product. The tax revenue value of Jackson rests in its magnetic quality: It is supposed by eternally optimistic Democrats that a research complex involving Jackson and Connecticut’s educational institutions will in time attract to the state tax revenue producing businesses.
Unlike Jackson, Pfizer of New London, a large pharmaceutical company that also engages in research, is a tax revenue producer. Interestingly, Pfizer was given tax credits and loans by the state when it opened operations, but recently the company had moved jobs out of state after the deal between the company and the state had been fulfilled and tax reductions had disappeared.
As a former communications director for state Democrats, the commentator above may, at least emotionally and ideological, still have a dog in the fight, but he generously acknowledges that “Republicans are right to question the deal and get as much information as possible.”
And there is the rub.
Some Republicans, much to the annoyance of Mr. Malloy and Roy Occhiogrosso, the governor’s chief cook and bottle washer, are asking for information that has not been forthcoming. They want to see the agreement arranged between Mr. Malloy and Jackson before they vote to commit tax money to what may or may not be a promising project. Their request has sent the deal makers into a crouch position that revolves around trade secrets. The General Assembly, which will be asked to pony-up the tax money that will keep the UCHC afloat for the near future, appears to have swallowed this lame excuse; even top military secrets that the U.S. government is loath to share with Wikileaks are provided on demand to the relevant overview committees in the U.S. Congress, possibly because national congressmen still take seriously their constitutional obligation to represent the will of the people to both presidents and lobby infested businesses. On such occasions, damaging information, made available to the committees, is redacted before the committee reports to congress and the people.
In a recent hearing that will determine the fate of millions of tax dollars, state legislators were told they had less than two hours to question representatives from Jackson. The people’s representatives were limited to one question apiece, and when Senator Leonard Fasano, the second-ranking Senate Republican, said he wanted to see the written agreement signed between the governor and Jackson, he was told to go fish.
"Everybody understands the term 'trade secrets' - meaning they are pieces of information that you don't want your competitors to know about,” said gubernatorial mouthpiece Occhiogrosso. “The law says we can't release the document. What he asked for, he can't get by law.''
At least not before the shameless, representation averse, rubberstamping General Assembly votes in favor of the funding.
“Republicans,” one commentator wrote, “are right to question the deal and get as much information as possible. But by the experts’ accounts, this is a good risk for Connecticut. And as in so many other ways, Connecticut should not be like Florida.”
Jackson was considering a move to Florida, but the deal in that state was never consummated. It has become part of the narrative of Connecticut Democrats supporting the deal that the governor of Florida failed to engage in the negotiations and so the state lost out on a promising deal that a wide awake Connecticut governor thereafter snatched from Florida’s jaws.
Connecticut 1, Florida 0.
Mr. Malloy, an activist governor, has vowed to remake Connecticut. Previous governors have been content in improving the general business climate in the state so that all businesses large and small, relying upon a set of governmental laws and regulations that did not favor one business over another, could plot their futures and compete together on what former Attorney General Richard Blumenthal use to call “a level playing field.” In bygone days of yore, if a regulation or a law did not apply equally to the local barber shop and a large employer such as Pratt & Whitney, that law or regulation would die in utero, because in the glory days of the republic laws and regulations were general and equitable. In the modern period, brimful with lobbyists and crony capitalists, governors see fit to determine the economic future of states by remaking business environments -- while in the process rewarding their friends and punishing their enemies.
Oh, happy day.
The “deal” to which the commentator above referred is, of course, the “private arrangement” worked out between Mr. Malloy and Jackson Laboratory to move the Jackson’s research operations to the UConn Health Center (UCHC) in Farmington.
Prior to the deal, Mr. Malloy had awarded the health center nearly a billion dollars, presumably to improve its failing operations. The installation of Jackson at the reconfigured UCHC will cost Connecticut taxpayers an additional $291 million -- initially. UCHC, a failing enterprise before Mr. Malloy and the Democratic dominated General Assembly decided to douse it with money, has been a tax sponge for decades. Jackson Laboratories is a successful non-profit business, which means that, unlike other overtaxed businesses in Connecticut, the research laboratory will not be returning tax dollars to the state. As a general rule, non-profits are tax revenue losing operations because, among other reasons, they do not produce a taxable product. The tax revenue value of Jackson rests in its magnetic quality: It is supposed by eternally optimistic Democrats that a research complex involving Jackson and Connecticut’s educational institutions will in time attract to the state tax revenue producing businesses.
Unlike Jackson, Pfizer of New London, a large pharmaceutical company that also engages in research, is a tax revenue producer. Interestingly, Pfizer was given tax credits and loans by the state when it opened operations, but recently the company had moved jobs out of state after the deal between the company and the state had been fulfilled and tax reductions had disappeared.
As a former communications director for state Democrats, the commentator above may, at least emotionally and ideological, still have a dog in the fight, but he generously acknowledges that “Republicans are right to question the deal and get as much information as possible.”
And there is the rub.
Some Republicans, much to the annoyance of Mr. Malloy and Roy Occhiogrosso, the governor’s chief cook and bottle washer, are asking for information that has not been forthcoming. They want to see the agreement arranged between Mr. Malloy and Jackson before they vote to commit tax money to what may or may not be a promising project. Their request has sent the deal makers into a crouch position that revolves around trade secrets. The General Assembly, which will be asked to pony-up the tax money that will keep the UCHC afloat for the near future, appears to have swallowed this lame excuse; even top military secrets that the U.S. government is loath to share with Wikileaks are provided on demand to the relevant overview committees in the U.S. Congress, possibly because national congressmen still take seriously their constitutional obligation to represent the will of the people to both presidents and lobby infested businesses. On such occasions, damaging information, made available to the committees, is redacted before the committee reports to congress and the people.
In a recent hearing that will determine the fate of millions of tax dollars, state legislators were told they had less than two hours to question representatives from Jackson. The people’s representatives were limited to one question apiece, and when Senator Leonard Fasano, the second-ranking Senate Republican, said he wanted to see the written agreement signed between the governor and Jackson, he was told to go fish.
"Everybody understands the term 'trade secrets' - meaning they are pieces of information that you don't want your competitors to know about,” said gubernatorial mouthpiece Occhiogrosso. “The law says we can't release the document. What he asked for, he can't get by law.''
At least not before the shameless, representation averse, rubberstamping General Assembly votes in favor of the funding.
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